How to achieve your investment goals this financial year

WHETHER you are diversifying or consolidating your portfolio, understanding the economic climate is essential.

A future-focussed investment strategy can help you transition profitably and increase equity over time, particularly with traditional bricks and mortar real estate investments

WHETHER you are diversifying or consolidating your portfolio, understanding the economic climate is essential.

Intuition and inspiration are helpful, but investing isn’t a vanity project, and the advice of a Lending Specialist can be invaluable. A future-focussed investment strategy can help you transition profitably and increase equity over time, particularly with traditional bricks and mortar real estate investments. 

Every Australian homeowner or investor has their version of the ‘big fish’ story or ‘the investment that got away’. As with the angling misadventure, the majority of failed investments are due to a lack of knowledge or use of inappropriate equipment. The economy is never stagnant, so knowing how to negotiate financial tides and currents is important if you are to achieve your investment goals this financial year.

Smart investors work with Lending Specialists who understand the territory. It’s a team effort built on confidence and trust, so establishing genuine rapport with a real expert is the best start possible. It’s also worth investigating the deals offered outside of the biggest banks, with lenders such as Mortgage House continually providing extremely competitive investment loan opportunities.

There are plenty of ways your lender will assist with your investments. You should also remain alert to opportunities while formulating your property investment goals for 2018. Here are a few ideas to get you started.

Set SMART Goals: Your investment strategy will be far more powerful if it is SMART:

• S – Specific
• M – Measurable
• A – Attainable
• R – Relevant
• T – Time-bound

Take proactive steps: Take every opportunity to discuss investment ideas or concerns with your Lending Specialist. There may be a more suitable loan product or better rate available. You should also fine-tune existing investments by periodically reviewing rental income and its capacity to offset property maintenance and other costs.

Write down your investment goals: It’s simple psychology, but if you write down the goals you want to achieve, and place the note in a prominent place, you are far more likely to achieve those goals. Your goals should be achievable in measurable, incremental steps.

Track investment progress: Although investments continue to generate value behind the scenes, you will need to remain abreast of developments. Establishing the viability of a potential investment has never been easier, thanks to online financial and borrowing calculators and tools, so take advantage of the resources. As investments accumulate, you can even use a portfolio tracker tool to ensure your investments are working for you.

Investment loans come in all styles, although real estate investing remains the popular choice, even in times when major cities are experiencing little growth in home values. Dramatic increases in real estate prices in Australia created opportunities that are unlikely to be repeated, and home ownership and investing is returning to a traditional ‘hold and wait’ pattern where values increase steadily over time.

Progressive lenders evolve with the times to ensure customers are provided with genuine investment opportunities. Mortgage House, for example, offers extensive home loan mortgage and investment products at extremely competitive rates. Investment loan products include:

• Variable rate loan with fluctuating interest rates and the opportunity to make lump sum repayments without penalty.
• Fixed rate loan where interest rates are locked in, usually for between one and five years.
• Split loan using both variable and fixed interest rate components, offering greater control of your money.
• Interest-only loan where repayments cover interest but not the principal amount for a time, making this a great option for renovating, home improvements or while transitioning between investments.

Additional options include refinancer, relocation, construction and renovation loans, all with specific features designed for purposeful investing. 

Investigating Mortgage House loan products is easy using the online best rate mortgage calculator. You should also take time to experiment with the how much can I borrow calculator, mortgage repayment calculator, budget planner calculator and other online resources.

The Australian economy has thrived during times of rapid growth and financial uncertainty. Decades of rising real estate prices in Australia is unavoidably tied to present global economic circumstances best understood by financial experts, making an appointment with your Mortgage House Lending Specialist part of a wise investment strategy.

Originally published as How to achieve your investment goals this financial year